OREANDA-NEWS. National Rating Agency has affirmed its 'A+' credit rating on Stroyexpo Exhibition Center LLO (SEC) with a Negative outlook. As part of PSN Group, SEC was assigned a NRA's first-time credit rating of 'A+' together with its parent group, on June 5, 2013. The rating was affirmed in March and September 2014 with a Stable outlook. In accordance with NRA's rating methodology, the rating on SEC is based on NRA's rating on PSN Group, as SEC is a special purpose vehicle (SPV), set up to implement one of PSN Group's development projects.

The rating is supported by SEC's affiliation with a large development management group and its visible growth prospects. PSN Group operates a sizable business; it demonstrated positive revenue flows in 2014 and has a comfortable debt maturity profile. The group has close business ties with Promsvyazbank PJSC (NRA's credit rating of 'AA+'), one of the largest financial institutions in Russia. NRA also notes the significantly reduced currency gap in the Group's borrowings, with many FX liabilities substituted with ruble-denominated debt.

The rating is constrained by the adverse macroeconomic situation, weakening the real estate market and the development management sector, as well as the group's exposure to the liquidity and currency risks and the negative translation adjustments in the group's investment property value. These factors prevent NRA from positively assessing the group's prospects based on its 2015 performance, as well as those for 2016. NRA will consider either the justification of the Negative outlook or the outlook revision after receiving information about the group's financial and operational performance in 2015.

NRA’s analytical products, including ratings and the contents of this press release, are statements of NRA’s independent opinion as of the date they are expressed and not statements of fact or recommendations to make any investment decisions or conduct any stock market transactions. NRA is not responsible for any results obtained from the use of opinions and/or information contained in this press release.

While NRA has obtained information from sources it believes to be reliable, NRA does not guarantee that this information is perfectly correct, complete and accurate, as it does not perform an audit or undertake any duty of due diligence or independent verification of any information it receives.